First Steps to Solvency

theoretica

alt80 said:

As I’ve said before I’m not after a retirement plan- if I get it great and should be a consequence of some of the stuff I’m doing in business tbf. I love buying income producing property. Buy one everyday if I could. Don’t see why I need to justify that to wife she should be pleased. Agreed I need to work towards deleveraging a bit, once the PGs are off I’m 100 growing the portfolio as well as the flips. Right deal I’m growing the portfolio tomorrow. Can’t see why the !!!!!! wanting to make more money is even being questioned on a !!!!!! money forum. 😆I’d make £50k/m net if I could then I’d go for £100k, wouldn’t everyone if they were honest with themselves? Keep reinvesting the retained and it’s like a bonus. No !!!!!! secret I don’t see why people can’t see that. I don’t love where my income level is but not gonna sit about getting depressed about it any longer. Would rather do something about it.

When you don't talk about taking future income from the portfolio, but only reinvesting it and growing the portfolio then it wouldn't seem to be anything at all to do with your wife.  Just a self contained project.  For her to be pleased you need to to talk as though those income producing units will benefit the family life at some point in ways she wants.

Money is a tool - and for me this site is about making the best use of that tool and trying to spread it sensibly so you have enough throughout life.  It's not about getting more as an end in itself, but for the benefits having money brings.  You have said you don't see the point in savings, because they aren't working.  But having money in a permanently closed loop just accumulating property isn't working for your life either. 

I am not saying you should spend all the income now or not grow or not deleverage - those are great medium term goals.  I am saying that if you don't talk about a longer term openness to drawing income from the project I can see why your wife finds it irrelevant to her.  What positive affect will this portfolio have on your life/spending and when? - that's probably what she will be interested in. Not just an inheritance for your son, probably when he is older than you are now. I can't quite believe I am writing to you in praise of spending money after where your posts started out, but it's about finding a balance.  And more than that you need to think about how things are actually affecting other people and that other people do look at matters differently to you and differently to each other too. 

enthusiasticsaver

theoretica said:

alt80 said:

As I’ve said before I’m not after a retirement plan- if I get it great and should be a consequence of some of the stuff I’m doing in business tbf. I love buying income producing property. Buy one everyday if I could. Don’t see why I need to justify that to wife she should be pleased. Agreed I need to work towards deleveraging a bit, once the PGs are off I’m 100 growing the portfolio as well as the flips. Right deal I’m growing the portfolio tomorrow. Can’t see why the !!!!!! wanting to make more money is even being questioned on a !!!!!! money forum. 😆I’d make £50k/m net if I could then I’d go for £100k, wouldn’t everyone if they were honest with themselves? Keep reinvesting the retained and it’s like a bonus. No !!!!!! secret I don’t see why people can’t see that. I don’t love where my income level is but not gonna sit about getting depressed about it any longer. Would rather do something about it.

When you don't talk about taking future income from the portfolio, but only reinvesting it and growing the portfolio then it wouldn't seem to be anything at all to do with your wife.  Just a self contained project.  For her to be pleased you need to to talk as though those income producing units will benefit the family life at some point in ways she wants.

Money is a tool - and for me this site is about making the best use of that tool and trying to spread it sensibly so you have enough throughout life.  It's not about getting more as an end in itself, but for the benefits having money brings.  You have said you don't see the point in savings, because they aren't working.  But having money in a permanently closed loop just accumulating property isn't working for your life either. 

I am not saying you should spend all the income now or not grow or not deleverage - those are great medium term goals.  I am saying that if you don't talk about a longer term openness to drawing income from the project I can see why your wife finds it irrelevant to her.  What positive affect will this portfolio have on your life/spending and when? - that's probably what she will be interested in. Not just an inheritance for your son, probably when he is older than you are now. I can't quite believe I am writing to you in praise of spending money after where your posts started out, but it's about finding a balance.  And more than that you need to think about how things are actually affecting other people and that other people do look at matters differently to you and differently to each other too. 

I would definitely agree with that.  I cannot see how accumulating more and more money will make anyone happy if it is accumulated for no purpose.  Fair enough if it is being accumulated to buy a bigger house, a more expensive car  or less hours at work but there has to be a reason for me to be interested in earning or accumulating wealth.  Who wants to be the richest person in the graveyard? My DH and I had this discussion before we retired. How much is enough money? For us it is sufficient to be comfortable with enough to cover our existing lifestyle without scrimping and being comfortable to treat ourselves to a new car every so often, do things to the house, travel and gift money to our family. If we had worked for longer no doubt our pensions would be even bigger but less time to enjoy it.  Very often though people mistake wealth as being a measure of success and status whereas I count being happy and contented as  a better indicator. 

getmore4less

Had a quick go at formatting so it might be better on small screen
still cut/paste from a spreadsheet
put each item in a row with a running what's left for the total
move school to its ovn section and put your variable in the life stuff.
( said before I think that needs breaking down)

not sure why but the numbers don't add up to zero
says you are over committed by nearly £800pm

Also updated this:
INCOME	£8,050.00
HOUSE
Mortgage	£1,240.00
Council tax	£250.00
Utilities	£290.00
B/C Ins	£30.00
	£1,810.00	£6,240.00
CARS
RANGE ROVER
Finance	£1,220.00
Insurance	£50.00
Tax	£40.00
Servicing	£40.00
Maintenance	£40.00
	£1,390.00	£4,850.00
BMW
Finance	£430.00
Insurance	£40.00
Tax	£40.00
Servicing	£40.00
Maintenance	£40.00
	£590.00	£4,260.00
CREDIT CARDS	£1,105.00	£3,155.00
SCHOOL	£1,100.00	£2,055.00
LIFE
Food	£650.00
Petrol	£300.00
Holiday	£170.00
Emergency fund	£170.00
Entertainment	£300.00
Occasions	£85.00
variable	£1,165.00
	£2,840.00	-£785.00

getmore4less

Still not quite there for a small screen
display rounded to £ and shorter descriptions should get there

ryanm8655

Works on my phone :-)

ladyholly

Works on mine too. My only comment at this point is don't forget school fees will rise not only with inflation but as your son gets older. Do you know what they will be as he reaches secondary age. Either 11 or 13 depending on the school. Possibly more still for GCSE years and A levels. Just a thought to be aware of. 

getmore4less

OK think I have double counted as your variable £1165 includes life entries.

What that says is after house, car, school, and debt you have £2055 to dish out on living
(a bit lower than the £2,200 I guessed before)
£380 unallocated

LIFE		£2,055
Food	£650
Petrol	£300
Holiday	£170
Emergency fund	£170
Entertainment	£300
Occasions	£85
	£1,675	£380

enthusiasticsaver

The only thing I would say is like others the £85 a month for occasions is no where near enough for Christmas or Birthdays if this Christmas is anything to go by.  I would be putting that into a regular saver and telling wife that credit card not to be used. Let her manage that budget. 

warby68

getmore4less said:

OK think I have double counted as your variable £1165 includes life entries.

What that says is after house, car, school, and debt you have £2055 to dish out on living
(a bit lower than the £2,200 I guessed before)
£380 unallocated

LIFE		£2,055
Food	£650
Petrol	£300
Holiday	£170
Emergency fund	£170
Entertainment	£300
Occasions	£85
	£1,675	£380

The £380 unallocated is what Alt is using to pay back Mrs A's Christmas splurge for the next few months
Bulk of food and fuel are fixed in reality, say £750  of the £950.
That takes the spends down to less than £1k

getmore4less

warby68 said:

getmore4less said:

OK think I have double counted as your variable £1165 includes life entries.

What that says is after house, car, school, and debt you have £2055 to dish out on living
(a bit lower than the £2,200 I guessed before)
£380 unallocated

LIFE		£2,055
Food	£650
Petrol	£300
Holiday	£170
Emergency fund	£170
Entertainment	£300
Occasions	£85
	£1,675	£380

The £380 unallocated is what Alt is using to pay back Mrs A's Christmas splurge for the next few months
Bulk of food and fuel are fixed in reality, say £750  of the £950.
That takes the spends down to less than £1k

If it is then it needs a entry in the full list.......money in == money allocated.
maybe just below CC
Wifes debt  £xxx